Mortgage approved subject to....

[NakedMum33and3rd]

Our mortgage has been approved subject to assessment of documents and valuation. Is this normal? Last time we were offered our mortgage they just offered it?
Is this just new wording on mortgage offers? Want to know if I can get excited or not!

Presumably it is based on a specific loan to value.

I suppose it depends when you last got a mortgage - certainly everything about the process seems more tortuous these days. Pre-2008, there were occasional cases of mortgage fraud in which banks loaned money against properties that didn't actually exist so I suppose now they want to check LR documents. There have also been many, many cases of ID fraud in which someone remortgages a mortgage-free property that has nothing to do with them so, again, the banks want to do extra checks for this as well.

We remortgaged last April. Last proper mortgage application was six years ago. I am hoping that it means that they will offer us the mortgage as long as everything checks out ok!

Sounds like you have been offered a 'mortgage in principal' and once you find the property you want to buy it will need to be valued by a surveyor before you receive your formal mortgage offer which enables you to complete the purchase.

We have found the property and all applications have been about the property we are buying. They have all details and solicitors have been instructed.

It is standard for mortgages to be contingent on documentation and valuation, yes.

I don't quite understand your second post ... it's usual for mortgage applications to take a few weeks. Agreement in principal is not quite what the name implies - rather, it's a possible yes - but is not a formal mortgage offer or agreement to provide funds.

Yep, sounds like an AIP to me rather than a formal mortgage offer?

We are first time buyers aged 34 and 36. Currently renting so in a position to move asap. We had a morgage in principle from hsbc last week for 180.000. Also have 20.000 deposit which is a gift from parent. We have no debts and no loans. Combined income of 41.000 a year and I can do an extra 2 hrs a day at work if I want. My work are allowing me to do as many extra hours as I like as I'm currently working 25hrs a week. Thought this would come in handy if interest rates increase. Do you think this is too much to borrow . Worried now that when we put full application in it'll give us less than needed as houses in our area in this price range don't come up that often. Also have savings of 9.000 for fees etc. Any other advice is greatly received.

It sounds like they've said they're willing to lend you that amount of money as a mortgage (i.e. They're happy you can pay them back), but that the actual offer is contingent on the house being real (hence documents) and the survey valuation being acceptable to them. So it's a not rejection but we need to keep going with the process decision.

So I suppose once a property has been found in our budget ( looking for under this ) then put in a full morgage application. I've heard hsbc are pretty strict so I'm really surprised we've got this far :)

Only issue I can see is a few later payments to bt back in 2011. Do you think it'll be picked up on .

I have no idea family. Have you tried the online affordability calculators? They might help you get an idea about affordability.